LNG’s moment as a marine fuel is finally here – and why that’s important for ship managers

It doesn’t take an expert in statistics to see that LNG is having a positive patch. According to the latest global orderbook figures, more than 360 newbuild LNG carriers are on order and in addition, another 600 alternative fuel vessels are set to be delivered on of which 50% will be LNG fuelled. In total, the non LNG carrier LNG fuelled fleet will increase to over 1000 vessels in the coming years.

A groundswell of confidence in the fuel – the peak of which so far might be recent media reports of Maersk returning to the LNG fold – is palpable. This is being driven by several factors, including the recognition that LNG can act as a bridging fuel to more sustainably derived fuel options in the future, the fact that shipowners feel reasonably certain of supply, and, of course, the cost of LNG compared to other alternative fuels.

The reality is that ships being built in the next five to ten years will potentially be required to operate all the way to 2050 and the culmination of the IMO’s current GHG Emissions strategy. It is in that context that LNG is being increasingly adopted as a primary energy source both for propulsion and power generation onboard – the fuel can offer a degree of technological and supply/demand certainty for shipowners today.

LNG has an excellent track record, having been transported efficiently and safely for the past 50 years. It is compliant with existing regulations and, importantly, bunkering infrastructure exists and is expanding to meet demand; indeed, current projections suggest that 35 more LNG bunker vessels will be needed by 2030 to meet the market’s appetite for the fuel.

Of course, this increased demand for LNG has implications for ship managers. It’s an area where V. is proud to have a deep history and track record. We currently operate LNG vessels  for prominent owners and charterers from a number of locations, and our global network across 30 countries sets us up well to support and enable effective LNG operations 24/7, around the world.

The large LNG newbuild order book and the exponential increase in dual fuel tonnage will, however, mean that sourcing and retaining trained crew will be a major challenge for the industry going forward.

Again, V. will leverage its experience to help mitigate this shortage where we can. We have provided LNG and FSRU crew to energy majors and blue-chip LNG owners for over 20 years, and provide inhouse recruitment, training, travel services and crew welfare and loyalty programmes. In recent years we have used this experience to successfully provide operations readiness and mobilisation, including crew IGF code training, and are now operating LNG, LPG and methanol dual-fuelled VLCCs, container ships and gas carriers within our ship management portfolio.

Recognising the crunch on trained seafarers for dual-fuel ships in the near future, we are proactively investing in developing top talent in non-hazardous cargo ship sectors, which we believe provides a pathway for individual growth and development for seafarers whilst also ensuring we can meet the industry’s needs.

All of this is underpinned by V. decarbonisation solutions such as V.ERDE, partnerships such as our tie-up with carbon trading house Aither, and, of course, our strategic partnership with the Maersk Mc-Kinney Moller Centre for Zero Carbon Shipping where we are actively contributing to building the foundations for safe ammonia dual fuel operations . We are also a member of SIGTTO, SGMF and the Intertanko Gas Technical Committee, ensuring that we can contribute to the development of the standards, processes and procedures that underpin shipping’s safe and efficient future fuels transition.

There is plenty to be excited about when it comes to LNG. It provides shipping with arguably its most tangible pathway to decarbonisation, meaning that the groundwork we collectively lay today will be just as relevant when ships are using bio- or e-LNG in two decades’ time. It’s up to ship managers to recognise and anticipate these shifts as they happen – and service the industry to the best of our ability as it navigates through a period of continued upheaval and change.